Can I file a complaint about a 401k rollover problem?

August 20, 2008 3:56 PM

Is there any regulation governing how long an employer can take to process a terminated employee's request to withdraw her money from the employer's 401k plan and send to a roll-over IRA (there was 0 employer contribution to the 401k)?

It took a former employer 8 weeks to process my request. I lost out on a $300 bonus TDAmeritrade was offering for IRA rollovers. It is all my own money and I think I should have been able to gain access more quickly to it. Any grounds on which I can file a complaint?

posted by mayann to Work & Money (2 answers total)

In the past I have always dealt with the company that manages the 401(k), not the company through which I had it.
posted by rhizome at 4:09 PM on August 20, 2008

I don't think so. The only rules I am aware of work the other way: the employer cannot send you a check containing your 401k dollars (triggering your 60 day deadline to put it into another 401k plan without having to pay taxes on it) without at least 30 days notice. The reason behind this rule is that many employers didn't want the hassle of administering small 401k accounts for former employees, and would just decide to cut the former employee a check. The employee, who just started a new job and had a lot of other things on his or her mind, would often just cash the check ("whoo hoo! fresh monies!") without realizing that they now had to pay taxes and penalties on the distribution.
posted by A Long and Troublesome Lameness at 7:07 PM on August 20, 2008